The Bitcoin (BTC) options market has expanded so rapidly that it now influences spot prices, according to a FalconX report.
Open interest in BTC options has surged to nearly $80 billion from $8 billion at the start of the year, matching the size of the bitcoin futures market. This growth reflects a shift in how traders manage risk and express market views, with options activity now serving as a leading signal rather than a secondary indicator.
Two platforms dominate the trend: Deribit, favored by crypto-native traders for short-dated, round-the-clock options, and BlackRock’s Nasdaq-listed iShares Bitcoin Trust (IBIT), which offers longer-dated, call-heavy options suited for institutional hedging, structured products, and yield strategies.
Put/call ratios highlight differing strategies—Deribit around 0.5–0.6, IBIT near 0.3—while BTC implied volatility has trended lower due to miner and large-holder sales, in contrast to ETH, which remains steadier thanks to staking and DeFi flows.
FalconX concludes that crypto options are now essential indicators, with Deribit reflecting short-term risk and IBIT revealing institutional positioning.
